ESPN said that it has acquired the NFL Network and several other media assets of the NFL in exchange for a 10% equity stake. The announcement came on Tuesday, August 5, ahead of Disney Sports' quarter report and in the runup to the National Football League (NFL) season, which will provide ESPN with new programming for its streaming service.
According to the NFL statement on its official website, a non-binding agreement gives ESPN the right to rule over the NFL’s linear RedZone Channel and NFL Fantasy. These transactions between America’s most popular sporting league and the world’s most innovative sports media leader are designed to set a new standard for how professional football is delivered, experienced, and celebrated by fans.
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The main deal involved is a set of seven regular season of NFL games, which had been exclusive to the league-owned channel. Disney has been involved in streaming sports programme on its network before acquiring Major League Baseball’s tech arm. The streaming platform used it as the foundation of its direct-to-consumer streaming push. But the notion of the most powerful sports entity of all, at least in the U.S., owning 10% of Disney’s foundational sports division represents a major breakthrough.
A part from the sale of NFL Network, the NFL and ESPN are also entering into a second non-binding agreement. Under this agreement, the NFL will allow to ESPN certain NFL content and other intellectual property to be used by NFL network and other assets.
The deal also includes a provision where ESPN will own broad rights to the RedZone brand and distribute the NFL RedZone channel to pay-TV operators. According to ESPN, the NFL will continue to own, operate, and produce the channel and keep digital rights. The launch date and pricing for the new ESPN streaming service are likely to be announced today, August 6.
“Today’s announcement paves the way for the world's leading sports media brand and America’s most popular sport to deliver an even more compelling experience for NFL fans, in a way that only ESPN and Disney can,” said Robert A. Iger, chief executive officer of The Walt Disney Company. “Commissioner Goodell and the NFL have built outstanding media assets, and these transactions will add to consumer choice, provide viewers with even greater convenience and quality, and expand the breadth and value proposition of Disney’s streaming ecosystem."
“Since its launch in 2003, NFL Network has provided millions of fans unprecedented access to the sport they love,” said NFL Commissioner Roger Goodell. “Whether it was debuting Thursday Night Football, televising the Combine, or telling incredible football stories through original shows and breaking news, NFL Network has delivered. The Network’s sale to ESPN will build on this remarkable legacy, providing more NFL football for more fans in new and innovative ways.”
“This is an exciting day for sports fans,” said Jimmy Pitaro, chairman of ESPN. “By combining these NFL media assets with ESPN’s reach and innovation, we’re creating a premier destination for football fans. Together, ESPN and the NFL are redefining how fans engage with the game—anytime, anywhere. This deal helps fuel ESPN’s digital future, laying the foundation for an even more robust offering as we prepare to launch our new direct-to-consumer service.”